Bajaj tops in M-Cap gains in CY 05

Mumbai, Jan 2 | Updated: Jan 3 2006, 06:50am hrs
The year 2005 witnessed the Sensex peaking new highs along with the market capitalisation (M-Cap) gaining record levels. Some of the industrial houses that had a M-Cap of around Rs 15,000 crore in calendar Year (CY) 2004 have outperformed the 30-share benchmark Sensex which gained 41% in CY 2005.

Among the Indian industrial groups, the Bajaj group led by two-wheeler major Bajaj Auto raced ahead with a jump of 85% or Rs 11,961.32 crore in its M-Cap at Rs 26,048 crore (Rs 14,087 crore). The Bajaj group companies (including Bajaj Hindustan) have nine stocks listed on the bourses.

Commenting on the Bajaj Groups performance, S Ranganathan, research analyst, LKP Securities said, The good performance shown by Bajaj Group is on the basis of the Bajaj Auto that has jacked up the market capitalisation of the entire group. The company has rolled out several new models in the two-wheeler segment which has helped it to increase its sales sustainably in the market. The Reliance Group led by RIL (Mukesh Ambani faction) was the second biggest gainer group which gained by 64.15% or Rs 48,640.59 crore at Rs 1,24,460.85 crore during the period under review. Apart from RIL, IPCL and Reliance Industrial Infrastructure Ltd (RIIL) are the two other group companies of the Mukesh faction which are listed on the bourses.

According to analysts, developments like RILs market share of High Speed Diesel (HSD) in the retail segment rising seven fold from 1.1% in 2004 to 7.6% in 2005 and now the clarity on the Reliance group demerger has brightened the prospects for the Reliance group stocks. The HCL group led by Shiv Nadar was the third highest gainers in terms of gain in its M-Cap. The M-Cap of four group companies have gained 57.05% or Rs 8,145.81 crore at Rs 22,460.70 crore in CY 2005.

The ICICI group ranks fourth in terms of gains in M-Cap. It added 55.63% or Rs 18,283.06 crore in its M-Cap and it stood at Rs 51,151.26 crore as on December 30, 2005. Other stock of the group 3i Infotech Ltd is also listed on the bourses.